Royalty Exchange

Royalty Exchange logo

Royalty Exchange is an American company that operates an online platform for buying and selling royalty assets of any type, mostly music, where royalty owners can sell their future payments to investors as alternative assets. The company hosts a centralized marketplace and online auction platform that connects a community of over 17,000 investors with owners of royalty-based assets.

All types of assets can be monetized and invested in including music royalties, film royalties, and tax credits, patent and intellectual property royalties, trade secret royalties, renewable energy land leases, technology licensing royalties, book publishing royalties, franchise royalties, copyright royalties and agriculture royalties.[1][2]

History

Royalty Exchange was founded in 2011 in Raleigh, North Carolina.[1] The founding team was led by Sean Peace, serial tech entrepreneur and CEO, Reggie Calloway, singer/songwriter and 5 time grammy nominated artist as well as Wilson Owens former band manager.

In October 2015, the company was acquired[3] by a group of private investors, including new CEO Matthew Smith, and President & CFO Jeff Schneider. Additional investors include artist manager and concert promoter Bill Silva of Bill Silva Entertainment, as well as a group of alternative investment experts. The company is now based in Denver, CO.

Notable Auctions

Frank Churchill

The first successfully completed online auction began on July 2 and closed on July 16, 2011. It included royalties of Disney songwriter Frank Churchill’s catalog, including songs from Snow White and the Seven Dwarfs and Bambi.[4][5]

Manning Sherwin

The second successful auction sold for $85,000 sale of 100% of the songwriter’s share of ASCAP public performance royalties generated by Frank Sinatra’s, "A Nightingale Sings in Berkley Square," and other compositions written by Manning Sherwin;

Kashif

The asset sold for $156,000 and consisted of 50% of the writer’s share of BMI public performance royalties generated by the R&B singer-songwriter and producer. The catalog featured the following tracks:

Cheryl Cook

This asset sold for $26,000 and consisted of 100% of Cheryl Cook’s BMI writer’s share of public performance royalties, and accumulated royalty-produced assets from songs by Preston Glass.[6][7]

Jake Owen

This auction, which included 50% of the writer's share of "What We Ain't Got" as performed by Jake Owen and written by Travis Goff and Travis Meadow, sold for $50,500. Peaking at No. 19 on Billboard’s Hot Country Songs and reaching No. 89 on Billboard’s Hot 100 list, Jake Owen’s sad but soulful lyrics speak to the heartbreaking feeling of wanting a loved one who has left.

Barry White

This asset sold for $73,000, consisting of 25% of songwriter's share of public performance royalties for the hit song “You're the First, the Last, My Everything.” The song was released by Barry White in 1974. It peaked at #1 on the Billboard Hot Soul Singles chart and #2 on the Billboard Hot 100 chart.[8]

Matt White

This auction closed at $900,000, covering the royalty income and master recording copyright for the song “Love” by Matt White.[9]

Dumb and Dumber

This asset, which included a catalog of music used in popular films like Dumb and Dumber, Shallow Hal, There’s Something About Mary, and others, sold for $122,500.[10]

Multi-Unit Auctions

On August 7, 2014, Royalty Exchange had its multi-unit auction, a type of auction where the asset is securitized or divided into multiple units allowing for numerous buyers to bid on and win small or large amounts of the asset. The auction consisted of producer royalties for 11 tracks recorded and performed by the alternative rock band, 3 Doors Down.[11]

Acquisition

In October, 2015, the business was acquired and subsequently moved operations to Denver, CO. As part of the acquisition a new marketing/sales, legal, and operations team were put in place.[12]

Further reading

References

  1. 1 2 Baverman, Laura. "Website Turns Music Royalties into Investments." USA Today. Gannett, 09 June 2014. Web. 25 June 2014.
  2. ↑ Chupka, Kevin. "Stocks, Bonds, And...Coldplay?" Yahoo Finance. Yahoo, 14 May 2014. Web. 25 June 2014.
  3. ↑ "Royalty Exchange founder sells company assets; starts new venture - Triangle Business Journal". Triangle Business Journal. Retrieved 2016-10-24.
  4. ↑ Maurer, Allan. "The Royalty Exchange starts online auctions with music from Disney classics." TechJournal. 05 July 2011. Web 18 Aug. 2014
  5. ↑ "'Snow White,' 'Cinderella,' Other Disney Song Royalty Rights Up For Auction", Huffington Post, 23 June 2011. Retrieved 14 October 2014.
  6. ↑ "Auction Overview" Royalty Exchange. 2014. Web 18 Aug. 2014
  7. ↑ "The Publishers Quarterly (End of Q2 2013): Royalty Exchange Wants to Make Publishing Income Work Like Stocks & Bonds." Billboard. BillboardBiz. 2 August 2013. Retrieved 18 August 2014
  8. ↑ "Barry White's "You're the First, the Last, My Everything"". www.royaltyexchange.com. Retrieved 2016-10-24.
  9. ↑ "Welcome to Royalty Exchange". auctions.royaltyexchange.com. Retrieved 2016-10-24.
  10. ↑ "Welcome to Royalty Exchange". auctions.royaltyexchange.com. Retrieved 2016-10-24.
  11. ↑ "Auction Overview" Auctions. Royalty Exchange. 2014. Retrieved 18 August 2014
  12. ↑ "Royalty Exchange | Marketplace to Buy and Sell Royalties". Royalty Exchange. Retrieved 2016-10-24.
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